Investing In Real Estate
Real estate investing is not dead. In fact, it is a hot topic once more. The last two years for most people have been the worst ever, especially to those who are into real estate investing. Over the last two years, they all seem to give up on their investments, but now they want to jump right back in. Who would have guessed?
Real estate investing has leaped forward and finally back upswing. How so? It is because the numbers of property values, that have dropped so low, have started to make sense once more. Tracing back, housing prices have dropped big time, ranging from 20% to 50%, which has made the homes more affordable to acquire. To help new home buyers buy these homes, the "bad behavior" on the part of the speculators was discouraged and the government has also stepped in as well.
In this recession, how can one benefit from real estate investing? Let's do a bit of the math. If you can finance a $100,000 mortgage at 6%, your mortgage payment is somewhere in the $600 range. If you add property taxes and insurance, your monthly outlay would probably be around $750. Now, assuming you can rent that property out for $900 monthly. A cash flow positive investment is more visible now.
Having that real estate investing scenario, it simply does make sense to hold on to that property for 10 to 20 year more and get great financial benefits. Why do I say so. The logic is that outside of general maintenance on the properties, you're getting someone else to pay for your mortgage. Also if property values increase over time, you could get even more benefits from a big windfall, when it comes for you to sell the property.
Of course, what you have planned doesn't work always. That's what happened during the last two years. People who ventured in real estate investing, bought up properties at such high values. Then, market crisis happened. The value of the properties has gone downhill and people couldn't re-finance or carry any more loan payments.
This drastic change of fortunes could happen to anyone. Real estate investing is not something that anyone should just go into haphazardly. Many of the age old phrases, such as "location, location, location" are especially true in real estate investing. Also, make sure the numbers "pencil in." If you think you're going to take a cash flow negative property and hold on for property value increase think again. Those markets may never come back again.
This is why it's extremely important to know what you are doing in real estate investing. There are several companies, gurus, etc. who purport to tell you how, what, when and how much. Many of the gurus are fly-by-night scammers. They will try to sell you a bill of goods. You should make sure to look at gurus who have been around a while and have a loyal following. Some examples of these people are Donald Trump, Robert Allen or Carlton Sheets. Basically, they've been there, done that. - 23229
Real estate investing has leaped forward and finally back upswing. How so? It is because the numbers of property values, that have dropped so low, have started to make sense once more. Tracing back, housing prices have dropped big time, ranging from 20% to 50%, which has made the homes more affordable to acquire. To help new home buyers buy these homes, the "bad behavior" on the part of the speculators was discouraged and the government has also stepped in as well.
In this recession, how can one benefit from real estate investing? Let's do a bit of the math. If you can finance a $100,000 mortgage at 6%, your mortgage payment is somewhere in the $600 range. If you add property taxes and insurance, your monthly outlay would probably be around $750. Now, assuming you can rent that property out for $900 monthly. A cash flow positive investment is more visible now.
Having that real estate investing scenario, it simply does make sense to hold on to that property for 10 to 20 year more and get great financial benefits. Why do I say so. The logic is that outside of general maintenance on the properties, you're getting someone else to pay for your mortgage. Also if property values increase over time, you could get even more benefits from a big windfall, when it comes for you to sell the property.
Of course, what you have planned doesn't work always. That's what happened during the last two years. People who ventured in real estate investing, bought up properties at such high values. Then, market crisis happened. The value of the properties has gone downhill and people couldn't re-finance or carry any more loan payments.
This drastic change of fortunes could happen to anyone. Real estate investing is not something that anyone should just go into haphazardly. Many of the age old phrases, such as "location, location, location" are especially true in real estate investing. Also, make sure the numbers "pencil in." If you think you're going to take a cash flow negative property and hold on for property value increase think again. Those markets may never come back again.
This is why it's extremely important to know what you are doing in real estate investing. There are several companies, gurus, etc. who purport to tell you how, what, when and how much. Many of the gurus are fly-by-night scammers. They will try to sell you a bill of goods. You should make sure to look at gurus who have been around a while and have a loyal following. Some examples of these people are Donald Trump, Robert Allen or Carlton Sheets. Basically, they've been there, done that. - 23229
About the Author:
Darryl Degenhardt has just got into real estate investing when market crisis started to happen. He almost dump his real estate investments. He is now a happy man like he used to be, now that his investments are starting to make sense once again.
posted by X - Men @ 1:31 AM
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